The Fed Did Indeed Cause the Housing Bubble

Published on Solari Real Channel, by Catherine Austin Fitts of Daily Musings (commenting an article by Alan Greenspan in The Wall Street Journal, March 11, 2009).

From: Sub-Prime Mortgage Woes Are No Accident:

… One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in counties throughout the world as well as in US communities.

Of all the actions that the Federal Reserve took to engineer this housing bubble, the one that I would note is Mr. Greenspan’s efforts to pacify Congresswoman Waters regarding allegations of government sponsored narcotics trafficking at a time when open Congressional hearings would have contributed to an important discussion of the operations engaging in mortgage fraud in minority communities. See, “Financial Coup d’Etat,” Chapter 16, Dillon Read & the Aristocracy of Stock Profits which was written in 2005 and published in April 2006, drawing from an article I first published in May 1999.

“On December 18, 1997, the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence regarding charges that the CIA was complicit in narcotics trafficking in South Central Los Angeles. Washington, D.C. ’s response was compatible with attracting the continued flow of an estimated $500 billion–$1 trillion a year of money laundering into the U.S. financial system. Federal Reserve Chairman Alan Greenspan in January 1998 visited Los Angeles with Congresswoman Maxine Waters — who had been a vocal critic of the government’s involvement in narcotics trafficking — with news reports that he had pledged billions to come to her district. In February Al Gore announced that Water’s district in Los Angeles had been awarded Empowerment Zone status by HUD (under Secretary Cuomo’s leadership) and made eligible for $300 million in federal grants and tax benefits” … (full text).

Some other links:

Watch this video: Accountability? 10.43 min: AIG in context: In case you missed the story, AIG received billions in bailout money. Then the company turned around and gave over $150 million to its executives for running the company into the ground;

Workers Struggles: Asia, Australia and the Pacific;

Tomgram: Robert Eshelman, The Other War on Workers;

Workers Struggles: Asia, Australia and the Pacific, 21 March 2009.

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